The world’s largest copper producer, Chile’s Codelco, and British giant Anglo American have signed a landmark agreement to jointly develop the neighbouring Los Bronces and Andina mines. The deal will deliver an additional 2.7 million tonnes of copper over 21 years without building a new mine, while saving up to $5 billion.
Copper mining giants often cooperate on specific projects to reduce investment risk and maximise returns. But the agreement finalised on Wednesday in Santiago is unprecedented in scope. For the first time, two major players have integrated development plans for adjacent operations, aiming to optimise ore extraction, use existing infrastructure more efficiently, and slash capital expenditure.
Two mines, one plan
The Los Bronces and Andina mines are situated in the same geological district in central Chile, holding some of the world’s largest copper resources. The collaboration means coordinating the sequence of extraction and sharing infrastructure such as conveyors, processing plants and tailings facilities. According to the companies, the synergies will allow them to produce an extra 120,000 tonnes of copper annually – roughly equivalent to the output of KGHM’s Sierra Gorda mine in Chile.
– This agreement shows what is possible when we work in partnership to capture attractive industrial synergies – said Duncan Wanblad, chief executive of Anglo American. – Integrating the mine plans of Los Bronces and Andina unlocks one of the biggest copper collaboration opportunities in the world.
The deal, which also involved Anglo American’s partners Mitsubishi Corp. and Mitsui & Co., is the result of years of negotiations. It is now described as one of the largest cooperation agreements ever signed in the copper sector.
Chile’s strategic bet on copper
The Chilean government strongly supported the deal. Copper is the country’s key export, and the industry has recently faced declining ore grades, water shortages and rising costs. The national goal of raising copper output to 6 million tonnes per year by 2030 has been under threat. The Codelco–Anglo American partnership offers a practical way to reverse the trend without launching costly new greenfield projects.
– This is a more efficient and responsible way to develop one of the world’s leading copper districts – said Bernardo Fontaine, chairman of Codelco. – It allows us to better use existing infrastructure and deliver greater benefits for Chile.
Although the agreement is signed, the first results will take years to materialise. Necessary investments still require environmental permits and detailed engineering studies. However, both companies are confident the plan will set a new benchmark for cooperation in the mining industry.
Źródło: WNP.PL, Fot. Anglo American / flickr
